Creative Destruction and Copyright Protection, a paper by the London School of Economics' Bart Cammaerts and Bingchun Meng, is an eye-opening look at the economics of file-sharing and music. The authors argue that an overall decline in consumer entertainment spending is to blame for the music industry's downturn, supporting their assertion with (for example), research showing that entertainment spending declined by 40 percent in households that didn't own computers (who probably weren't downloading!) over the period of overall decline for the industry.
Their conclusion is that copyright enforcement won't bring back consumer spending on music -- but it will strangle new business models built on file-sharing, robbing the next generation of musicians without paying the current generation. The authors propose several business models, including allowing ISPs to buy unlimited, technology-neutral licenses on behalf of their users.
The authors of the study acknowledge that these alternative models are not going to impress SONY and EMI. "Compared to the value of the mainstream music market, dominated by the 'big four', these are relatively marginal activities," they observe.
Did file-sharing cause recording industry collapse? Economists say no
But they may become less marginal very soon. With world mobile data traffic set to explode by a factor of 26 by 2015, and with most people in the Middle East, Sub-Saharan Africa, and South/Southeast Asia expected to link to the mobile 'Net before they get electricity, file sharing could be poised for a second great leap forward, whether Big Content approves of it or not.
These millions of new Netizens are not going to have the money to buy digital music files. They're going to use BitTorrent. That will put more and more pressure on governments to decide whether they want to criminalize a huge portion of humanity, or encourage the market to adapt to the new "ephemeral" models described by this study and others.
Big telcos and cable operators demand the right to impose data caps that punish their most enthusiastic customers for using too much Internet (with exceptions to the caps made for services that have paid bribes for “preferred carriage” of course), and they say that it’s simple economics: if you use up more of a service, […]
In Millionaire Migration and the Taxation of the Elite: Evidence from Administrative Data, Stanford sociologist Cristobal Young builds on his substantial research on “millionaire migration,” to show that only a small minority of millionaires move when local taxes go up — far too few to represent a net loss to the tax coffers.
Many years ago, EFF co-founder John Gilmore and I were discussing the prevalence of botnets, which are commonly used to launch distributed denial of service (DDoS) attacks that overwhelm websites with floods of traffic; John said that if the botnets were really on the rise at the reported rate, we should expect to see a […]
We’d all love a 75-inch TV screen on which to view our favorite shows. But not all of us can drop the cash needed to get one of those broadcasting beauties (or even have the space needed to house them).Thankfully, there’s an alternative. With the SainSonic Mini LED Portable Projector (only $59.99 in the Boing Boing Store), you can project a picture […]
If you want to add some real firepower to your programming repertoire, learn Java–one of the most adaptable, widely-used programming platforms around. You can easily do that with this Ultimate Java bundle, now just $69 in the Boing Boing Store.Across 14 lectures and 117 hours of content, the educators at online academy eduCBA will walk you through […]
Every company wants to harness the power of social media, but few understand how to make that happen. Be one of those select few with this Social Media Marketing Course & Certification package, now just $29 in the Boing Boing Store.Over 12 modules of course material, you’ll learn what it takes to increase a brand’s […]